Suppose the Production of Electricity Generates Pollution

question 149

Multiple Choice

Suppose the production of electricity generates pollution.In this case,the optimal level of electricity is produced when the marginal social benefit from electricity production equals the _____

• A)marginal private cost of electricity production.
• B)marginal social cost of electricity production.
• C)marginal external cost of electricity production.
• D)marginal cost of labor used in electricity production.
• E)marginal cost of capital used in electricity production.

---

Definitions:

True Value

An accurate assessment of an item's worth, based on its current condition and market demand.

Non-Obvious

In the context of patents, it refers to an invention that is not evident to someone with ordinary skill in the particular field of the invention.

Patent

A legal document granting the holder exclusive rights to an invention, design, or process for a certain period.

Obvious

Easily perceived or understood; clear, self-evident, or apparent.